1. A Debt Collector is not trying to help you. They are not trying to work things out or come up with a plan you can live with. They just want your money. They are working on a commission and they get paid only when you pay them. You are wasting your breath telling them your life story. They do not care what your situation is. They do not care if you are a blind, quadriplegic. They just want your money.
2. Why do they just want your money? Because that is how they get paid. They get a percentage of what you pay.
3. You already feel bad for not paying the bill, (if you owe it) and they will play on that. They will tell you that only “bad” people do not pay their bills, and you are not a bad person, are you?
4. Some of my favorite bankruptcies are those that I file for bill collectors. Do you really think that jerk that is trying to intimidate you into paying your bill, has never had a bill that he could not pay? He probably has a terrible credit score!
5. Bill Collectors are almost certainly collecting this debt for another entity who sold your debt to them for pennies on the dollar. In other words, they may have bought your $10,000.00 credit card balance for $500.00. In this example, anything you pay them over $500.00 is pure profit.
6. Even if you “settle” with them, they will issue a 1099 debt forgiveness form to the IRS on the debt that they forgave and place dings on your credit. So, how does that “settlement” help you…….? Debt consolidation almost never works either. If you owe five creditors $1,000.00, and you consolidate those bills so that you owe one creditor $5,000.00, what have you saved besides postage?
7. This debt they are collecting may be totally uncollectable in court because it is barred by the statute of limitations. That means, it may be too late for the actual creditor to sue you in court. It may still be on your credit report, but you have a valid defense in court for not paying if it is barred by the statute of limitations.
8. Do not believe anything they say about bankruptcy, or any other law. Debt collectors are not attorneys and can not give you legal advise. If they try to give you legal advise, they are practicing law without a law license. If an attorney representing a creditor contacts you, he can not give you legal advise if he is representing the creditor.
9. You cannot go to jail for not paying a bill. In Texas, you can go to jail for not paying child support. You can not go to jail for not paying a bill.
hughes_zoo: 10. A “Pay Day” loan is dischargeable in a bankruptcy case. Pay Day loans can be “included”, in fact must be included, in all bankruptcy filings. You will not go to jail for not paying a Pay Day loan. A Pay Day Lender can not put you in jail. The only individuals who can prosecute you for a crime are a U.S. Attorney or a District Attorney, not a Pay Day Lender.
If you have debt and are being harassed by bill collectors, contact our office for a free initial consultation. Learn the truth about how to resolve your financial problems.